Eliminates the board of trustees of Rutgers University and provides that its powers will be exercised by the board of governors of
the university.

CURRENT VERSION OF TEXT

As introduced.

An Act concerning Rutgers, The State University and revising
parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. N.J.S.18A:65-14 is
amended to read as follows:

18A:65-14. The membership of
the board of governors shall be classified as follows and consist of:

a. the president of the
corporation, serving as an ex officio non-voting member; and

b. 15 voting members,

[i. seven of whom]who shall be appointed by the
Governor of the State, with the advice and consent of the Senate, with one of
these members being a resident of Camden County, and one of [whom shall be]these members
appointed [by the
Governor] upon
the recommendation of the President of the Senate and the Speaker of the
General Assembly and who shall be a resident of Essex County [, and

ii. seven of whom shall be
appointed by the board of trustees, from among their members, one of whom shall
be a resident of Essex County and one of whom shall be a resident of Middlesex
County, elected and serving under the provisions of subsection I.c. or I.d. of
18A:65-15].

The first additional
appointments made by the Governor pursuant to P.L.2012, c.45 (C.18A:64M-1 et
al.), shall not require the advice and consent of the Senate, but thereafter
such advice and consent shall be required.

All members shall serve for
terms of six years, except that the terms of those initially appointed by the
Governor which began on September 1, 1956, shall expire respectively (as
designated by him) one, two, three, four, five and six years after June 30,
1956 [, and terms
of those initially appointed by the board of trustees which began on September
1, 1956, shall expire respectively (as designated by the board) two, three,
four, five and six years after June 30, 1956];
all of whose respective successors shall be appointed to serve six-year terms.
Governors may succeed themselves for not more than one additional term after
having served one full six-year term (including an initial term beginning on September 1, 1956, and expiring on June 30, 1962).

(cf: P.L.2012, c.45, s.87)

2. Section 20 of P.L.2012,
c.45 (C.18A:65-14.1) is amended to read as follows:

b. Effective July 1, 2013, a campus advisory board shall be appointed for Rutgers University-Newark.
The campus advisory board shall work with the chancellor of Rutgers
University-Newark in implementing the teaching, research, and service mission
of Rutgers University-Newark, the engagement of the campus with its local
community, its region, and the State, and its commitment to academic
excellence, access, and diversity.

The campus advisory board
shall be composed of 13 members as follows: the chancellor of Rutgers
University-Newark who shall serve ex-officio; [the]a member of the
board of governors of Rutgers, The State University [who is appointed by the board of trustees
and who is, pursuant to N.J.S.18A:65-14, required to be a resident of Essex
County]; two
Rutgers University-Newark faculty members one of whom is appointed by the
faculty union and one of whom is elected by the Rutgers Newark Faculty Council;
one member of the Rutgers University-Newark administration appointed by the
Rutgers University-Newark chancellor; one Rutgers University-Newark staff
member selected from among the staff unions; two student representatives
appointed by the Rutgers University-Newark student governing association; three
members of the local community, two of whom shall be selected by the Office of
Community Affairs from community organizations with one of these members being
an alumnus of Rutgers University-Newark, and one of whom shall be selected by
the Mayor of the City of Newark; and two public members who are appointed by
the chancellor and who are residents of a northern county.

All members shall serve a term
of two years, renewable by reappointment or re-election in the same manner as
the initial selection. A president of the advisory board shall be selected for
a one-year term by a vote of the members of the campus advisory board, and may
be so elected for successive terms without limit.

A member shall be subject to removal,
after a hearing by a majority of the campus advisory board, for malfeasance or
conduct injurious to the interest of Rutgers University-Newark.

The board shall meet and
organize annually at a regular meeting held during the second week in September.
The president shall serve until the following September and until his successor
is appointed and qualified. Vacancies in the offices shall be filled in the
same manner for the unexpired term only.

Members of the board shall
serve without compensation but shall be reimbursed for all reasonable and
necessary expenses.

The campus advisory board
shall hold at least one public meeting each semester.

(cf: P.L.2012, c.45, s.20)

3. Section 26 of P.L.2012,
c.45 (C.18A:65-14.6) is amended to read as follows:

b. Effective July 1, 2013, a campus board of directors shall be appointed for Rutgers
University-Camden. The campus board of directors shall be composed of [10]eight members as
follows: the chancellor of Rutgers University-Camden who shall serve as an
ex-officio, nonvoting member; three members appointed by the board of governors
of Rutgers University; [two
members appointed by the board of trustees of Rutgers, The State University
from among its non-public members;]
and four members, who are residents of the southern counties, appointed by the
Governor with the advice and consent of the Senate.

The terms of office of a
member appointed by the board of governors [or
the board of trustees]
of Rutgers University shall be coterminous with his term on that board. The
members appointed by the Governor shall serve for terms of six years beginning
on July 1 and ending on June 30; except that of the members first appointed by
the Governor, one shall serve for a term of six years, one shall serve for a
term of four years, one shall serve for a term of three years, and one shall
serve for a term of two years. Each member shall serve until his successor is
appointed and qualified, and vacancies shall be filled in the same manner as
the original appointments for the remainder of the unexpired term. A director
appointed by the Governor may succeed himself for not more than one additional
term after having served one full six-year term.

A director shall be subject to
removal, after a hearing by a majority of the campus board of directors, for
malfeasance or conduct injurious to the interest of Rutgers University-Camden,
subject to review and confirmation by the Governor in the case of his
appointees or by the board of governors [or
the board of trustees, as applicable,]
in the case of that board's appointees.

c. The board shall meet and
organize annually at a regular meeting held during the second week of
September, by the election of a chair, vice-chair, and such other officers as
the board shall determine. The officers shall serve until the following
September meeting and until their successors are elected and qualified. Vacancies
in the offices shall be filled in the same manner for the unexpired term only.

d. Members of the board
shall serve without compensation but shall be entitled to be reimbursed for all
reasonable and necessary expenses.

(cf: P.L.2012, c.45, s.26)

4. Section 146 of P.L.2012,
c.45 (C.18A:65-14.13) is amended to read as follows:

146. Effective July 1, 2013, a campus advisory board shall be appointed for Rutgers University-New
Brunswick. The campus advisory board shall work with the chancellor of Rutgers
University-New Brunswick in implementing the teaching, research, and service
mission of Rutgers University-New Brunswick, the engagement of the campus with
its local community, its region, and the State, and its commitment to academic
excellence, access, and diversity.

The campus advisory board
shall be composed of 11 members as follows: the chancellor of Rutgers
University-New Brunswick who shall serve ex-officio; [the]a member of the board of governors of Rutgers, The State University [who is appointed by the
board of trustees and who is, pursuant to N.J.S.18A:65-14, required to be a
resident of Middlesex County];
two Rutgers University-New Brunswick faculty members one of whom is appointed
by the faculty union and one of whom is elected by the Rutgers-New Brunswick
Faculty Council; one member of the Rutgers University-New Brunswick
administration appointed by the Rutgers University-New Brunswick chancellor;
one Rutgers University-New Brunswick staff member selected from among the staff
unions; two student representatives appointed by the Rutgers University-New
Brunswick student governing association; and three members of the local
community, two of whom shall be selected by the Office of Community Affairs
from community organizations with one of these members being an alumnus of
Rutgers University-New Brunswick, and one of whom shall be selected by the
Mayor of the City of New Brunswick.

All members shall serve a term
of two years, renewable by reappointment or re-election in the same manner as
the initial selection. A president of the advisory board shall be selected for
a one-year term by a vote of the members of the campus advisory board, and may
be so elected for successive terms without limit.

A member shall be subject to
removal, after a hearing by a majority of the campus advisory board, for
malfeasance or conduct injurious to the interest of Rutgers University-New
Brunswick.

The board shall meet and
organize annually at a regular meeting held during the second week in
September. The president shall serve until the following September and until
his successor is appointed and qualified. Vacancies in the offices shall be
filled in the same manner for the unexpired term only.

Members of the board shall
serve without compensation but shall be reimbursed for all reasonable and
necessary expenses.

The campus advisory board
shall hold at least one public meeting each semester.

(cf: P.L.2012, c.45, s.146)

5. N.J.S.18A:65-16 is
amended to read as follows:

18A:65-16. (a) The terms of
all governors [and
trustees which are limited]
shall, unless otherwise expressly provided herein, commence on July 1 in the
first year, and end on June 30 in the last year, of such term.

(b) In case a governor [or a trustee] is elected president and
he thereby becomes a nonvoting governor [or
trustee] ex
officio, a vacancy in his prior office as governor [or trustee]
shall thereby occur.

(c) [In case a trustee is
appointed a governor by the Governor of the State, and he thereby becomes a
trustee during his term as governor, a vacancy in his prior office as trustee
shall thereby occur.]Deleted by amendment, P.L. , c. ) (pending before the Legislature as
this bill)

(d) Any vacancy occurring
during the term of any governor [or
trustee] (other
than by the expiration of his term) shall be filled for the unexpired term
only, in the same manner and subject to the same provisions, as in the case of
his appointment [or
election; subject, however, to the provisions of subsection I.d. of section
18A:65-15].

(cf: P.L. 1994, c.48, s .179)

6. N.J.S.18A:65-17 is
amended to read as follows:

18A:65-17. No person, other
than the president, shall be eligible to membership on the board of governors,
if he is a salaried official of the State of New Jersey, or shall be eligible
to membership on [either] the board of governors [or the board of trustees], if he is receiving
remuneration for services from the corporation or the university. If any
member of [either]the board shall
become ineligible by reason of the foregoing, a vacancy in his prior office as
governor [or
trustee, as the case may be,]
shall thereby occur.

(cf: P.L.1994, c.48, s.180)

7. N.J.S.18A:65-18 is
amended to read as follows:

18A:65-18. Each governor [and each trustee] taking office, before
entering on the duties of his office, shall take and subscribe an oath or
affirmation to support the constitution of the state of New Jersey and of the
United States, to bear allegiance to the government of the state, and to
perform the duties of his office faithfully, impartially and justly, to the
best of his ability.

(cf: N.J.S.18A:65-18)

8. N.J.S.18A:65-19 is
amended to read as follows:

18A:65-19. [(a)] Any governor shall be
subject to removal after hearing, by a majority of the board of governors, for
malfeasance or conduct injurious to the interests of the corporation or the
university, subject to review and confirmation [(i)]
by the governor of the state [in
the case of his appointees, and (ii) by the board of trustees in the case of
its appointees.

(b) Any trustee other than
one serving under the provisions of subsection I.a. of 18A:65-15 shall be
subject to removal after hearing for malfeasance or conduct injurious to the
interests of the corporation or the university (i) by the governor of the state
in the case of a trustee appointed by him or (ii) in the case of a trustee
elected by the board of trustees, by a majority of the then membership of the
board of trustees].

(cf: N.J.S.18A:65-19)

9. N.J.S.18A:65-20 is
amended to read as follows:

18A:65-20. The governors [and trustees] shall not receive
compensation for their services as such. Each governor [and trustee] shall be reimbursed for
his actual expenses reasonably incurred in the performance of his duties or in
rendering service as a member of or on behalf of [either]the board or any committee of [either]the board.

(cf: N.J.S.18A:65-20)

10. N.J.S.18A:65-21 is
amended to read as follows:

18A:65-21. No governor [, trustee] or officer of the
corporation shall be personally liable for any debt, obligation or other
liability of the corporation or of, or incurred by or on behalf of, the
university or any constituent unit thereof.

(cf: N.J.S.18A:65-21)

11. N.J.S.18A:65-22 is
amended to read as follows:

18A:65-22. a. Six members of
the board of governors shall constitute a quorum.

[b. Such number, not less than 12, of the
board of trustees as shall be determined by the board, and until so determined,
12 members, shall constitute a quorum.

c. A quorum of a joint
meeting of the boards shall be present if six governors and not less than a
majority of the trustees then in office (other than those who are governors),
are present.]

(cf: N.J.S.18A:65-22)

12. N.J.S.18A:65-23 is
amended to read as follows:

18A:65-23. The board of
governors [and
the board of trustees]
shall [each] elect [its own]a chairman from
among its [respective] members.

(cf: N.J.S.18A:65-23)

13. N.J.S.18A:65-24 is
amended to read as follows:

18A:65-24. The government,
control, conduct, management and administration of the corporation and of the
university shall be [respectively] vested in [and allocated between] the board of governors [and the board of trustees] as set forth and
expressed in this chapter.

(cf: N.J.S.18A:65-24)

14. N.J.S.18A:65-25 is
amended to read as follows:

18A:65-25. The board of
governors shall have general supervision over and be vested with the conduct of
the university. It shall have the authority and responsibility to:

a. Determine policies for
the organization, administration and development of the university;

b. Study the educational
and financial needs of the university, annually acquaint the Governor and
Legislature with the condition of the university, and prepare and present the
annual budget to the Governor, the Division of Budget and Accounting in the
Department of the Treasury and the Legislature, in accordance with law;

c. Disburse all moneys
appropriated to the university by the Legislature, moneys received from
tuition, fees, auxiliary services and other sources [, and from or by direction of the board of
trustees];

d. Direct and control
expenditure and transfer of funds appropriated to the corporation and the
university by the State in accordance with the provisions of the State budget
and appropriation acts of the Legislature; and, as to funds received from [the trustees and] other sources, direct
and control expenditures and transfers in accordance with the terms of any
applicable trusts, gifts, bequests, or other special provisions, reporting
changes and additions thereto and transfers thereof to the Director of the
Division of Budget and Accounting in the State Department of the Treasury. All
accounts of the university shall be subject to audit by the State at any time;

e. Borrow money for the
needs of the corporation and the university, as deemed requisite by the board,
in such amounts and for such time and upon such terms as may be determined by
the board [, with
the consent and advice of the board of trustees]; provided, that no such borrowing shall be
deemed or construed to create or constitute a debt, liability, or a loan or
pledge of the credit, or be payable out of property or funds (other than moneys
appropriated for that purpose) of the State;

2. Employ architects to
plan buildings; secure bids for the construction of buildings and for the
equipment thereof; make contracts for the construction of buildings and for
equipment; and supervise the construction of buildings;

g. Manage and maintain, and
provide for the payment of all charges on and expenses in respect of, all
properties utilized by the university;

h. In accordance with the
provisions of the budget, have the sole power (subject to the provisions of
section 18A:65-31) to elect, appoint, remove, promote or transfer all
corporate, official, educational and civil administrative personnel, and fix
and determine their salaries in accordance with salary schedules adopted by the
board of governors. Such salary schedules shall prescribe qualifications for
the various classifications and shall limit the percentage of the educational
staff that may be appointed or promoted to any given classification;

i. In accordance with the
provisions of the budget, appoint, remove, promote and transfer all other officers,
agents, or employees, assign their duties, determine their salaries, and
prescribe qualifications for all positions, and in accordance with the salary
schedules of the State Civil Service Commission wherever possible; and

j. Authorize any new educational
department or school consistent with the institution's programmatic mission or
approved by the [Commission
on]Secretary
of Higher Education.

(cf: P.L.1994, c.48, s.181)

15. N.J.S.18A:65-26 is
amended to read as follows:

The board of [trustees]governors:

(1) [Shall act in an overall advisory capacity;

(2)] Shall (a) control (i) properties, funds and
trusts vested, as of August 31, 1956, in the corporation in possession or
remainder or expectancy (other than and expressly excluding properties and
funds owned by or title to which is in the state of New Jersey or which are
held upon an express trust for the use of the state, or which have been
acquired by the use of moneys appropriated by the state or by the federal
government to the use of the corporation or the land grant college of New
Jersey, including but not limited to real estate, buildings, improvements,
fixtures, and appurtenances thereto, and tangible personal property); and (ii)
properties, funds and trusts received by the corporation on or after September
1, 1956, by private gift, donation, bequest or transfer, in any manner, under
the terms of any applicable trust, gift, bequest or donation dated or
delivered (aa) prior to September 1, 1956, unless otherwise designated, or (bb)
on or after September 1, 1956, if so designated; provided, however, that all
property, educational facilities, rights and privileges which are impressed
with a public trust for higher education of the people of the state of New
Jersey shall continue to be so impressed; and (b) [make available (after meeting all expenses
of its administration) to the board of governors]have access to the income from such
funds and the use of or income from such properties, subject to the provisions
stated hereinafter in section 18A:65-27;

[(3)](2) Shall have sole authority over the investment of funds under its
control;

[(4)](3) Shall have power to maintain such administrative staff and incur and
pay such expenses as it deems reasonably necessary to the effective exercise
of its functions and responsibilities under this chapter or by reason of any
other fiduciary or other responsibilities to which it is subject; and

[(5)]
(4) Shall be represented on the membership of the committees
of the several colleges.

(cf: N.J.S.18A:65-26)

16. N.J.S.18A:65-27 is
amended to read as follows:

18A:65-27. I. It is hereby
declared to be the public policy of the State of New Jersey that:

a. the corporation and the
university shall be and continue to be given a high degree of self-government
and that the government and conduct of the corporation and the university shall
be free of partisanship; and

b. resources be and
continue to be provided and funds be and continue to be appropriated by the
State adequate for the conduct of a State university with high educational
standards and to meet the cost of increasing enrollment and the need for proper
facilities.

II. In consideration of the
utilization by the State for the purposes of public higher education of
privately donated properties and funds valued as at September 1, 1956 at
approximately $50,000,000, and the prospect of future private donations, the
State by this chapter agrees with the board of trustees and its successors
that:

a. if the properties and
funds controlled by the [trustees]board of governors
shall not be properly applied in accordance with the provisions of subsection
d. of section 18A:65-25 for the purpose of higher education and in accordance
with the terms of any applicable testamentary, trust, or other special
provision; or

b. if, without the consent
of the board of [trustees]governors,

(1) the university is not
continued to be designated and maintained as the State University of New
Jersey, or

(2) the name of the
university shall be changed, or

(3) a vacancy in the office
of the president of the university shall be filled otherwise than by
appointment of the board of governors [with
the advice and consent of the board of trustees, or

(4) the provisions for the
essential self-government of the university, viz., the provisions of sections
18A:65-12 to 18A:65-16, inclusive, 18A:65-19, 18A:65-24 to 18A:65-26,
inclusive, 18A:65-28, subsection b. of 18A:65-29, 18A:65-30, subsection c. of
18A:65-31, 18A:65-33, 18A:65-6, 18A:65-9 and 18A:65-4, or any of them or of
this section 18A:65-27, are amended or altered in any substantial respect or
repealed]; or

c. if provision shall not
be made by the State sufficient to enable the board of [trustees]governors to
discharge its trust to apply the trust assets described in [subsection 2 of section]paragraph (1) of
N.J.S.18A:65-26 for public higher education through the conduct of a
university with high educational standards, the board of [trustees]governors, after
careful consideration and on not less than 60 days' prior written notice [to the board of governors
and] to the
Governor, shall have and may exercise the right to withhold or withdraw the use
of the properties and funds above described in [subsection 2 of section]paragraph (1) of
N.J.S.18A:65-26, or any part of them, (aa) subject to adjudication by the
courts of the State, and (bb) subject to their proper application for the
purposes of public higher education and in accordance with the terms of any
applicable testamentary, trust or other special provision.

(cf: P.L.1994,c.48, s.182)

17. N.J.S.18A:65-28 is
amended to read as follows:

18A:65-28. The [boards]board shall have
and exercise the powers, rights and privileges that are incident to [their respective]its
responsibilities for the government, conduct and management of the corporation,
and the control of its properties and funds, and of the university, and the
powers granted to the corporation or the [boards]board or
reasonably implied, may be exercised without recourse or reference to any
department or agency of the state, except as otherwise expressly provided by
this chapter or other applicable statutes. The provisions of sections 11 and
13 of chapter 20 of the Laws of 1944 shall not be deemed or construed to be
applicable to the corporation or the university.

(cf: N.J.S.18A:65-28)

18. N.J.S.18A:65-29 is
amended to read as follows:

18A:65-29. [a. The boards may meet
in joint session for the purpose of consultation and discussion, or to act
upon any matter which requires joint or concurrent action of both boards.

b. The boards by joint or
concurrent action may adopt, and from time to time amend, bylaws, ordinances,
statutes, rules, regulations and orders applicable to such matters as require
or are subject to the exercise of joint responsibility or action, and each]The board may
adopt, and from time to time amend, bylaws, ordinances, statutes, rules,
regulations and orders applicable to such matters as require or are subject to
the exercise of its responsibility or its action, subject [, in either case,] to the provisions of
this chapter and other applicable statutes.

(cf: N.J.S.18A:65-29)

19. N.J.S.18A:65-30 is
amended to read as follows:

[Each]The board shall have the power to appoint and regulate the duties,
functions, powers and procedures of committees, standing or special, from its
members and such advisory committees or bodies, as it may deem necessary or
conducive to the efficient management and operation of the corporation and the
university, consistent with this chapter and other applicable statutes. [The board of governors
may appoint trustees who are not governors to membership on its committees,
without vote.]

(cf: N.J.S.18A:65-30)

20. N.J.S.18A:65-31 is
amended to read as follows:

18A:65-31. a. There shall be
a president of the corporation and of the university.

b. He shall be responsible
to the [boards]board, and shall
have such powers as shall be requisite, for the executive management and
conduct of the corporation and the university in all departments, branches and
divisions, and for the execution and enforcement of the bylaws, ordinances,
rules, regulations, statutes and orders governing the management, conduct and
administration thereof. He shall hold office at the pleasure of the board of
governors.

c. In case of a vacancy in
the office, the president shall be elected by the board of governors[, with the advice and
consent of the board of trustees].

(cf: N.J.S.18A:65-31)

21. N.J.S.18A:65-32 is
amended to read as follows:

18A:65-32. The corporation
shall, annually on or before July 31, file in the office of the secretary of
state a report (a) of the [election
and] appointment
of the, and the names and residences of the, members of the board of governors
[and of the
board of trustees],
and (b) of the election and appointment of the executive officers of the
corporation, including the president, provost, vice president if any,
secretary, assistant secretaries, treasurer and assistant treasurers, and the
comptroller and assistant comptroller, at the time in office.

(cf: N.J.S.18A:65-32)

22. N.J.S.18A:65-33.1 is
amended to read as follows:

18A:65-33.1. The corporation
shall have the care, custody and control of such property as the State now has
or shall hereafter acquire at the university, subject to the visitorial powers
of the [Chairman
of the Commission on]Secretary of Higher Education at the request of the Governor.

(cf: P.L.1994, 48, s.183)

23. N.J.S.18A:65-34 is
amended to read as follows:

18A:65-34. The visitorial
general powers of supervision and control of the [Chairman of the Commission on]Secretary of
Higher Education at the request of the Governor over Rutgers, The State
University, are continued and are defined as the powers to visit the university
to examine into its manner of conducting its affairs and to enforce an
observance of its laws and regulations and the laws of the State.

(cf: P.L.1994, c.48, s.184)

24. N.J.S.18A:65-35 is
amended to read as follows:

18A:65-35. The board of
governors shall advise, in consultation with the [Commission on]Secretary of Higher Education and
the Presidents' Council, to the end that the facilities and services of the
university may be so utilized as to increase the efficiency of the public
school system and provide higher education for the people of the State, and the
board of governors shall make recommendations to the Governor and the
Legislature, respecting the needs for the facilities and services, of the
university, as an instrumentality of the State for said purposes.

(cf: P.L.1994, c.48, s.185)

25. The following sections
are repealed:

N.J.S.18A:65-13; and

N.J.S.18A:65-15.

26. This act shall take
effect immediately.

STATEMENT

This bill eliminates the board
of trustees of Rutgers, The State University and provides that its powers will
be exercised by the board of governors of the university.